Toyota Motor Corp (ADR) (NYSE:TM) Lexus owners now have the option to get help in terms of financing their vehicles. Essentially, owners of these vehicles will be able to rely on others to efficiently pay off their car lease.
The automaker announced that it would be introducing this financial funding ability, in cohesion with GetAround, which is a car-sharing service offered in San Francisco. Essentially, how this would work, owners would be able to lease their vehicle on GetAround, the money made will then be paid directly to the payment of the car.
Although this may be the first of the kind to emerge from Toyota Lexus, the idea of car-sharing to reduce car debt was first introduced by Tesla Motors Inc. (NASDAQ:TSLA) CEO Elon Musk.
The partnership between Toyota Lexus and GetAround
The first thing to note is that this option for the financing of consumer vehicles will only be available from January 2017. However, the introduction of this financial option is derived from the partnership with the automobile giant, and the car-sharing startup.
The original announcement of this partnership was on Monday. However, the specific details of the partnership have not been announced. An example of such a detail is that Toyota revealed that they had made a lump investment into GetAround, as a part of the partnership, however, the amount has not been revealed.
According to the partnership, Toyota will allegedly be introducing “Mobility Service Platform”. This will be introduced on a limited number of Lexus models, which will be available by owners to rent out to GetAround.
Other companies that are involved in similar partnerships
Toyota was not the first company to approach ride-sharing as a means for profitable income. One of the first industry movers, in regards to car-sharing as a profit, was Tesla. For the last few months, Musk has continuously been emphasizing the possibility to make a sizeable revenue stream through deploying their own vehicles on ride-sharing company’s networks.
Further examples of companies that are approaching integrating this service into their revenue stream include General Motors Company (NYSE:GM), who recently partnered with Lyft. Where Lyft is a ride-hailing service, which will make use of General Motors vehicles. This partnership, is vey similar to that of Toyota Lexus and GetAround.
Toyota stock closed at $115.66, witnessing a decline of $0.85 or 0.74%.
1 Chart Pattern Every Investor Should Know
This little-known pattern preceded moves of 578% in ARWR, 562% in LCI, 513% in ICPT, 439% in EGRX, 408% in ADDUS and more...